Reliance Power Ltd. saw a 5% drop in its share price after receiving a debarment notice from the Solar Energy Corporation of India (SECI). This notice prohibits the company and its subsidiaries from participating in SECI tenders for three years, effective November 6, 2024, due to allegations involving a subsidiary’s bid submission.
Key Developments:
- Debarment Reason: SECI’s action follows allegations that Reliance NU BESS Limited, a subsidiary of Reliance Power, submitted a bid with a fake endorsement of a bank guarantee organized by a third party.
- Company’s Response: Reliance Power responded to the notice, stating that it was a victim of fraud. The company emphasized that it acted in good faith and has become a target of forgery and conspiracy conducted by external parties.
- Legal Action: In response to the incident, Reliance Power filed a criminal complaint with the Economic Offence Wing of the Delhi Police on October 16, 2024, against the third-party entity involved. The case is under investigation.
- Commitment to Shareholders: Reliance Power expressed its intent to take necessary legal steps to challenge SECI’s decision and assured its over 40 lakh shareholders that it is acting in their best interests.
This situation places Reliance Power under scrutiny as it navigates the impact of SECI’s decision while attempting to address allegations and protect its business reputation.
